The projections of weak oil demand during the second quarter have prompted the state petroleum company Abu Dhabi National Oil Company (ADNOC) to slash oil shipment in February. ADNOC is pondering to slash output of its most prolific crude oil grade, Murban by
13 per cent in the coming period.

Further, the supply of Lower Zakum and Umm Shaif crude may be declined 15 per cent in February while oil from the Upper Zakum field would see 10 per cent cut during the same period. Meanwhile, the oil exporters' organization OPEC held a meeting last Tuesday in the Angolan capital Luanda, discussing the production targets for the period.

There is a widespread consensus among analysts that the OPEC make take steps to discourage inventory building in the world in the wake of significant decline in the seasonal demand of oil in the second quarter.

Leading consulting firm PFC said in its report, "OPEC could face the prospects of needing to undertake Herculean efforts to tighten up fundamentals in early 2010. Most likely the organization would need to agree to substantial cuts of 1 million bpd of more from actual production in early 2010, in order to bring total inventories down to manageable levels."